$Tesla Motors(TSLA)$ current valuation, with high P/E ratio of over 300x depends on critical assumptions about its future as a tech & AI player, rather than an automotive manufacturer. The current share price of ~$490 as of 16 Dec 2025 is driven largely by expectations for non-automotive ventures like Robotaxis & FSD.
Sustained high growth, margin expansion despite competition & leadership with strong execution will determine its future.
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